Let’s be clear: a national approach to stimulating growth and raising living standards has under-delivered for decades. In the 30 years following the Second World War, our average annual growth rate was around 3.6 per cent, dropping to roughly 2.1 per cent in the following three decades. However, since the start of the financial crisis in 2007, this has fallen to an average of just 0.2 per cent per annum. Meanwhile, life expectancy in the UK has stalled or even reversed, particularly among the most deprived populations.
It does not have to be like this. Research has shown that bringing our largest cities outside London up to the level of their EU counterparts could add £100bn to GDP annually. While in 2022, the rural areas contributed an estimated £315bn in gross value added to England’s economy.
The government has made growth one of its core missions, but this is only possible to deliver through shifting power and resources to local places. This is recognised, in part, in its devolution drive, with the aim to set up mayoral strategic authorities across the country. It’s a positive step. But it is local councils, not strategic authorities, who have the most immediate and consequential impact through delivery in our cities, towns and neighbourhoods.
Councils are integral to shaping the conditions that allow businesses and communities to flourish. We understand the challenges our local economies face and can design and deliver effective long-term economic strategies for our communities.
In my area of Calderdale, West Yorkshire, in a mature Mayoral Combined Authority area, we have harnessed the strengths of our place – the creativity, landscape, heritage and community spirit – to drive culture-led regeneration and economic growth. Over the last ten years, we’ve seen a boom in filming, with productions such as Gentleman Jack, Happy Valley, and Marvel: Secret Invasion showcasing our borough nationally and internationally. In 2023, 31 productions did more than 100 days of filming in Calderdale, adding over £850,000 to the regional economy. Tourism is worth around £431m to the borough annually and supports some 9,000 jobs.
One key dimension to unlocking transformational growth is tackling economic inactivity – and this cannot be achieved on our own. The government’s Get Britain Working White Paper highlights the importance of connecting health and economic systems to support those currently outside the workforce. Across West Yorkshire, we are already leading the way as a “trailblazer” and “accelerator”, integrating health, skills, and employment initiatives with the aim of assisting 4,500 economically inactive people back into work over the next 12 months.
A collaborative, place-based approach is essential to tackling complex socio-economic issues. Across the North we have the potential to unlock 320,000 homes on brownfield land, but we need the support of the government to bring these sites to market. And it is crucial that when we do, we bring our communities with us. Councils, as the key collaborators and conveners, bring together residents, businesses, and policymakers to ensure growth is not just imposed on areas but positively shaped by local voices.
And local government could do much more to drive inclusive economic growth This is why the Society of Local Authority Chief Executives and Senior Managers and the Institute of Economic Development are calling for economic development to become a fully-funded statutory requirement for councils. However, we must recognise that this measure alone will not turn the economic tide.
While we possess the local understanding, we can sometimes falter in execution. The underfunding of local government over the last 15 years means many councils lack the confidence and capacity to fruitfully engage with the private sector and manage schemes with the potential to drive growth. To realise the potential of our places, we need government to unlock and adequately fund decision-making at a local level. This does not necessarily mean more “new” funding. Government should use the money already in the system more effectively.
By embracing local solutions, and working together – locally, regionally, nationally – we can kickstart our economy, improve living standards, and deliver positive change for our communities.
This article first appeared in our Spotlight Igniting Growth supplement of 14 March 2025.
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